The pair breaks through the 0.7300 level today to reach its highest since November 16. It comes as the dollar collapses across the board, continuing yesterday’s gloomy mood. It’s pretty much a technical breakdown for the greenback against most of the major currencies, with the euro, pound and loonie taking advantage.
The Aussie is no exception as it is up 0.3% against the dollar today. It should be noted that the AUD / USD is now testing waters above its 100-day moving average (red line) at 0.7285. Hold a break above that and it opens up more room to travel the pair higher.
The 0.7400 level is the next key target on any further bullish leg from here, adding to nearby trendline resistance and 200 day moving average (blue line) @ 0, 7425 currently.
This will offer the next key technical test for the pair, as buyers attempt to justify an upward extension as the dollar struggles to stay afloat this week.